Scale Economies, the Value of Time, and the Demand for Money
Longitudinal Evidence from Firms
Bibliographic Data
| ID | 10178131 |
|---|---|
| Authors | Casey B Mulligan (0000-0001-9357-3446, University of Chicago, corresponding author) |
| Year | 1997 |
| Volume | 105 |
| Issue | 5 |
| Pages | 1061-1079 |
| Publication date | 1997-10-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/262105 |
| OpenAlex | W1986090375 |
| Language | EN |
| Citations received | 10 |
| References cited | 13 |
COMPUSTAT data on 12,000 firms for the years 1961-92 indicate that large firms hold less cash as a percentage of sales than small ones. Whether comparisons are made within or across industries, the elasticity of cash balances with respect to sales is about 0.8. Firms headquartered in countries with high wages hold more money for a given level of sales, a finding consistent with the idea that time can substitute for money in the provision of transactions services. The estimates are consistent with both scale economies in the holding of money and secular declines in velocity. Copyright 1997 by the University of Chicago
Balance (ability · Business · Cash · Economics · Economies of scale · Endogenous money · Microeconomics · Monetary economics · Monetary policy · Scale (ratio · Value (mathematics · Velocity of money · Economic theories and models · Finance · Fiscal Policy and Economic Growth · Gender, Labor, and Family Dynamics
Panel Data Econometrics
The determinants and implications of corporate cash holdings
Power Laws in Economics and Finance
Cointegration Vector Estimation by Panel Dols and Long‐run Money Demand
The Impact of Trade Credit Financing on Corporate Environmental Performance
Governance mechanisms, investment opportunity set and SMEs cash holdings
Cash holdings in SMEs
Economies of scale and the demand for money
Industrial policy and corporate cash holdings
The Demand for Money, Financial Innovation, and the Welfare Cost of Inflation
The Transactions Demand for Cash
Errors in variables in panel data
Theory of the Consumption Function
The Interest-Elasticity of Transactions Demand For Cash
The Demand for Money
The Demand for Money
The Transactions Demand for Cash
The Financial Structure of Manufacturing Corporations and the Demand for Money
Monetary Trends in the United States and the United Kingdom
A Contribution to the Theory of Taxation
| Citations per year | 0.37 |
|---|---|
| Citation span | 1999 - 2026 (28) |
| Highly cited | No |